DOCSLIB.ORG

Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe Primary Credit Analysts: Cynthia M Werneth, CFA, New York (1) 212-438-7819; [email protected] Paulina Grabowiec, London (44) 20-7176-7051; [email protected] Secondary Contacts: David Fisher, Toronto (1) 416-507-2541; [email protected] Oliver Kroemker, Frankfurt (49) 69-33-999-160; [email protected] Paul J Kurias, New York (1) 212-438-3486; [email protected] Daniel S Krauss, CFA, New York (1) 212-438-2641; [email protected] Table Of Contents U.S. Shale Gas Is Fueling Large Capacity Increases North America Retains Cost Advantages North American Producers: Low Costs And Changing Dynamics Shape Credit Quality European Companies: Specialization And Geographic Diversity Counter Higher Costs Credit Stability Is Likely To Prevail In Both Regions Related Research And Criteria WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 23, 2013 1 1120286 | 301859358 Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe The March IHS World Petrochemical Conference in Houston touched on several themes that Standard & Poor's Ratings Services believes could have important implications for the credit quality of chemical producers in North America and Europe. A key takeaway was that North American petrochemical producers will likely continue to benefit for the next several years from low-cost feedstocks derived from shale gas. However, producers in other regions, notably Europe, will probably remain at a cost disadvantage. This is consistent with our views. Chemical consulting firm IHS, the sponsor of the conference, voiced increased caution, however, about the potential for global oversupply of certain petrochemicals later this decade, when significant capacity is slated to come online. North American producers' favorable cost positions played an important role in several of our recent ratings upgrades, as did our belief that our ratings on these companies can withstand the industry downturn we expect. And, despite the challenges that European chemical manufacturers face, we have stable outlooks on most of them. This indicates our belief that many will undertake profit improvement measures. Several also benefit from geographic diversity and a specialty chemical orientation, where other factors in addition to cost position contribute to their success. Nevertheless, rating pressure on European chemical companies could increase in coming years. Overview • The IHS World Petrochemical Conference underscored the advantages over Europe that cheap shale gas is giving North American petrochemical producers. • Credit quality is likely to remain stable for most North American petrochemical companies, but potential changing industry dynamics are worth watching. • European companies face a cost disadvantage in global markets, but most have been able to maintain credit stability through specialization and increased geographical diversity. U.S. Shale Gas Is Fueling Large Capacity Increases Following more than a decade without any major capacity expansions in the U.S., the availability of plentiful, low-cost natural gas liquids (NGLs) from the shale gas boom has spurred significant capacity increases. According to IHS, the U.S. petrochemical industry plans to add 40 million metric tons of new capacity in 20 key products by 2018, and IHS estimates that the U.S. could add another 45 million by 2030. The largest addition is likely to be in the ethylene chain, which could represent a 60% increase to the currently installed base by 2030. IHS reckons that investment through 2030 could total nearly $120 billion. Substantial though they are, these planned capacity additions in the U.S. represent only a fraction of those planned globally, with significant capacity likely to be added in the Middle East (the lowest-cost region) and Asia (where demand is growing fastest). WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 23, 2013 2 1120286 | 301859358 Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe It remains to be seen whether all the announced capacity will be built. But even if, as IHS assumes, global GDP grows by 3.5% in 2013 and continues to grow at close to that pace for the next few years, with demand for petrochemicals increasing at a similar rate, global capacity growth could exceed demand growth with the addition of significant new capacity around 2017. Using ethylene--the largest petrochemical by volume--as a proxy for the industry, IHS now estimates that average operating rates will remain below 90%, with higher rates in low-cost regions and lower rates in high-cost regions. However, IHS does not expect the industry to overbuild into a deep trough. North America Retains Cost Advantages The shale gas boom has been a boon to the U.S. petrochemical industry by lowering input costs and, by proximity, to Canadian producers that are also able to source low-cost feedstocks. This has pushed North American production down the global cost curve, just above the Middle East and well below Europe and Asia. Natural gas-derived feedstocks are the source for most North American petrochemical production, as opposed to oil in much of the rest of the world. Energy is another important input cost in petrochemical production, and cheaper natural gas has also lowered North American production costs. Although the oil to gas ratio may narrow somewhat, both IHS and Standard & Poor's expect it to remain above historical levels, favoring users of NGLs. In addition, IHS expects the supply of NGLs to be sufficient to support all announced petrochemical projects. It also forecasts a continued gap between U.S. and international natural gas prices, although the differential may be a bit narrower than it has been the last few years. All these factors should ensure continuation of a lower cost of production in North America compared with all other regions except the Middle East. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 23, 2013 3 1120286 | 301859358 Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe Chart 1 North American petrochemical manufacturers and other types of companies that benefit from low natural-gas costs (such as fertilizer producers) should enjoy prosperity during the next few years as global demand for their products increases and before they complete their capacity additions. Toward the end of this decade, when new capacity starts up, markets are apt to become more competitive, but we believe these companies should retain their favorable cost position and therefore remain profitable. However, for most companies we see credit risks potentially arising in three main areas: export capability, capital spending, and mergers and acquisitions (M&A). And the shale gas phenomenon has placed a handful of other companies at a disadvantage because they are heavy users of intermediate chemicals—such as butadiene—that were in greater supply when petrochemical producers were cracking more oil-based feedstocks. Export capability With the building of large new petrochemical projects in the U.S., supply additions will likely outpace domestic demand growth. Consequently, much of the new production will be destined for export from the U.S., either as chemicals or finished goods. In fact, IHS predicts that one-third to half of global production will ultimately travel between countries. This will place increasing importance on supply chain, transportation, and distribution; marketing proficiency and reach; and supportive policies governing international trade. These issues will be particularly important for companies such as chloralkali and vinyl producer Axiall Corp. The U.S. vinyl industry already relies on WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 23, 2013 4 1120286 | 301859358 Low-Cost Shale Gas Gives North American Petrochemical Producers Advantages Over Europe overseas markets, exporting about 30% of production. But a U.S. housing comeback would help to boost domestic demand. Nitrogen fertilizer is an important exception to this general trend of greater reliance on export markets. We believe that any increase in U.S. production would displace imports, which we believe constitute roughly 50% of the U.S. market. Several issuers we rate plan to expand their nitrogen production capacity through de-bottlenecking and brownfield expansions, and possibly through greenfield projects, but Agrium Inc.'s management estimates that it would require 12 to 14 new North American nitrogen facilities to displace all offshore nitrogen imports into the U.S. Capital spending World-scale petrochemical projects are typically multi-billion dollar investments and take years to complete. It would therefore be particularly risky for companies to incur significant debt to finance these projects and then complete them at around the same time, resulting in competitive pricing. For this reason, it's worth comparing the capital spending plans of some of the leading U.S. producers. • Chevron Phillips Chemical Co. LLC repaid essentially all its book debt last year in connection with a change in its ownership. Although there is substantial debt at some of its Middle Eastern joint ventures, it is embarking on U.S. Gulf Coast petrochemical investments in good financial health and plans to finance them with internally generated cash flow or parent investment. • LyondellBasell Industries N.V. has thus far refrained from announcing any major
Load more

Recommended publications
  • Alternative Feedstocks in Chemicals Manufacturing
    Alternative Feedstocks in Chemicals Manufacturing Joanna McFarlane and Sharon Robinson Green Chemistry and Green Engineering Conference American Chemical Society Washington DC June 27, 2006 High Feedstock Prices Negatively Impact the Chemical Industry • The high cost of natural gas has eliminated the competitive advantage for U.S. chemical production • As fuel prices rise, chemical manufacturers are shutting down domestic production and moving plants to Asia & Middle East − 50% of methanol, 45% of ammonia, and 15% of ethylene capacities have been shut down in U.S. since 2000 − U.S. import of fertilizers increased to 45% from 10% in 1990 − In 2005 8,400 jobs were lost in the chemical industry − Industry went from an 80-yr trade surplus ($20B in 1995) to trade deficits beginning in 2002 Sources: Guide to the Business of Chemistry 2005 Chemicals IOF Annual Report 2004 June 27, 2006 Energy Independence Issue: Industrial Use of Petroleum & Natural Gas 30 25 20 15 Quads/yr 10 Petroleum 5 Natural Gas Feedstock Energy Usage 0 4% of Total U.S. Energy Consumption 3% of Total U.S. Natural Gas Consumption Petrochem Ind Other Industry Electric June 27, 2006 Residential Commercial Transportation Alternative Feedstock Options for Producing Large-Volume Chemicals • Coal – gasification and liquefaction • Biomass – thermochemical, biological processes, pyrolysis • Methane – stranded, unconventional, and hydrates • Unconventional petroleum – oil shale, tar sands, heavy oil • Novel pathways – CO2/H2O, methane, hydrogen to hydrocarbons June 27, 2006 Selected
    [Show full text]
  • The Top 50 Commodity. Chemicals: Impact of Catalytic Process Limitations on Energy, Environment, and Economics
    ,,. , I /. I; i :<. .' ,'- \ -. I, 'I ., ,I ' ''I PNL-10684 ' UC-60 1 The Top 50 Commodity. Chemicals: Impact of Catalytic Process Limitations on Energy, Environment, and Economics Anna Lee Y. Tonkovich, Ph.D. Mark A. Gerber August 1995 Prepared for the U. S. Department of Energy, Office of Industrial Technology Biological Chemical Technologies(OR), Research @CTR) under contractand DE-ACO6-76RLO 1830 Program Pacific Northwest Laboratory * Richland, WA 99352 DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. Executive Summary The production processes for the top 50 U. S. commodity chemicals waste energy, generate unwanted byproducts, and require more than a stoichiometric amount of feedstocks. Pacific Northwest Laboratorya has quantified this impact on energy, environment, and economics for the catalytically produced commodity chemicals. An. excess of 0.83 quads of energy per year in combined process and feedstock energy is required. The major component, approximately 54%, results from low per-pass yields and the subsequent separation and recycle of unreacted feedstocks. Furthermore, the production processes, either directly or through downstream waste treatment steps, release more than 20 billion pounds of carbon dioxide per year to the environment. The cost of the wasted feedstock exceeds 2 billion dollars per year. Process limitations resulting ‘from unselective catalysis and unfavorable reaction thermodynamic constraints are the major contributors to this waste. Advanced process concepts that address these problems in an integrated manner are needed to improve process efficiency, which would reduce energy and raw material consumption, and the generation of unwanted byproducts.
    [Show full text]
  • Toxic Industrial Chemicals
    J R Army Med Corps 2002; 148: 371-381 J R Army Med Corps: first published as 10.1136/jramc-148-04-06 on 1 December 2002. Downloaded from Toxic Industrial Chemicals Introduction location to another. Depending on the The first chemical warfare agent of the available routes of movement, and quantity modern era, chlorine, was released with of chemical to be moved, transport can occur devastating effect on 22 April 1915 at Ypres, by truck or rail tank cars, over water by barge Belgium. Along a 4 mile front, German or boat, over land through above- or below- soldiers opened the valves of 1,600 large and ground pipelines and by air. 4,130 small cylinders containing 168 tons of Toxic chemicals may be produced by the chlorine.The gas formed a thick white cloud burning of materials (e.g., the burning of that crossed the first allied trenches in less Teflon produces perfluoroisobutylene) or by than a minute.The allied line broke, allowing their reaction if spilled into water (e.g. silanes the Germans to advance deep into allied produce hydrogen chloride and cyanides, territory. If the Germans had been fully hydrogen cyanide). prepared to exploit this breakthrough, the course and possibly the outcome of WWI Toxic Industrial Chemicals may have been very different. (TICs) Chlorine is a commodity industrial A Toxic Industrial Chemical (TIC) is defined chemical with hundreds of legitimate uses; it as: is not a "purpose designed" chemical warfare an industrial chemical which has a LCt50 agent. Phosgene, another commodity value of less than 100,000 mg.min/m3 in industrial chemical, accounted for 80% of any mammalian species and is produced in the chemical fatalities during WWI.
    [Show full text]
  • CONCAWE Review Vol. 23, No. 1
    Petrochemical feedstocks: the cornerstone of competitiveness Future outlook While the chemicals The future of much of Europe’s chemical industry depends heavily upon the availability of affordable industry will remain petrochemical feedstocks. largely reliant on In the Middle East, where petrochemical feedstocks are petrochemical-based cheap, and in China, where demand is surging, pro- feedstocks for decades ducers are substantially increasing capacity for a wide range of petrochemicals including polypropylene and to come, the scope for polyethylene. In the USA, cheap shale gas and eco- greater use of nomic recovery are driving a chemical industry invest- ment bonanza. But demand growth in the European renewables as Union is weak and output growth is modest. feedstocks cannot be The challenge for the chemical industry is two-fold. First, ignored. Europe is highly dependent upon imported feedstock. including enzymes, vitamins, organic acids, amino Oil, the most important, is globally traded, and input acids, polymers and thickeners for industries ranging prices are competitive. But because European gas from advanced materials to the pharmaceutical, food prices are generally high, we are at a competitive disad- and feed industries. Animal fats and vegetable oils are vantage for chemicals that use natural gas as a feed- used in the production of detergents and coatings, and stock, such as ammonia, hydrogen and the precursors natural extracts are turned into additives for personal of polyamides and methanol. Second, many industrial care and cosmetics products. processes for petrochemicals are energy intensive: cheap gas or electricity elsewhere leaves European More recently, consumer demand has powered the chemical producers at a competitive disadvantage.
    [Show full text]
  • Escaping from the Commodity Dependence Trap Through Technology and Innovation
    UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT COMMODITIES & DEVELOPMENT REPORT 2021 Escaping from the Commodity Dependence Trap through Technology and Innovation Geneva, 2021 © 2021, United Nations All rights reserved worldwide Requests to reproduce excerpts or to photocopy should be addressed to the Copyright Clearance Center at copyright.com. All other queries on rights and licences, including subsidiary rights, should be addressed to: United Nations Publications 405 East 42nd Street New York, New York 10017 United States of America Email: [email protected] Website: https://shop.un.org/ The designations employed and the presentation of material on any map in this work do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of any firm or licensed process does not imply the endorsement of the United Nations. United Nations publication issued by the United Nations Conference on Trade and Development. UNCTAD/DITC/COM/2021/1 ISBN: 978-92-1-1130188 eISBN: 978-92-1-403046-1 ISSN: 2519-8580 eISSN: 2524-2709 Sales No.: E.21.II.D.14 COMMODITIES & DEVELOPMENT Escaping from the Commodity Dependence Trap through Technology and Innovation REPORT 2021 Acknowledgements The Commodities and Development Report 2021: Escaping from the Commodity Dependence Trap through Technology and Innovation was prepared by Janvier D. Nkurunziza (team leader), Stefan Csordás and Marco Fugazza, from the Commodities Branch of the Division on International Trade and Commodities of the United Nations Conference on Trade and Development (UNCTAD).
    [Show full text]
  • Attachment 8
    Environmental Assessment for Food Contact Notification FCN 1641 http://www.fda.gov/Food/IngredientsPackagingLabeling/EnvironmentalDecisions/default.htm ATTACHMENT 8 ENVIRONMENTAL ASSESSMENT 1. Date: February 10, 2016 2. Name of Applicant/Petitioner: Solvay Chemicals, Inc. 3. Address: 3333 Richmond Avenue Houston, Texas 77098 Lewis & Harrison LLC (Agent) 122 C Street NW Suite 505 Washington DC 20001 4. Description of Proposed Action: A. Requested Action This Food Contact Notification (FCN) requests the clearance of a food-contact substance (FCS) that is an aqueous solution containing peroxyacetic acid (PAA), hydrogen peroxide, acetic acid (AA), hydroxyethylidene 1,1-diphosphonic acid (HEDP), dipicolinic acid (DPA) and sodium hydroxide (NaOH). The FCS will be used in food processing facilities as an antimicrobial agent used in: 1) process water (processing aid) and ice used in the production and preparation of poultry products such as post-main chiller (air or water) secondary processing of whole birds, carcasses, parts and pieces, skin on or off and organs, in the washing, rinsing, cooling and processing of poultry products; and pre-air chiller dip tanks and post-main water chiller systems as finishing chillers; in spray, wash, rinse, dip, chiller water, low-temperature (e.g., less than 40oF) immersion baths, or scald water for whole or cut poultry carcasses, parts, trim, and organs; and, 2) Process water, ice, or brine used for washing, rinsing, or cooling of processed and pre­ formed meat as defined in 21 CFR 170.3(n)(29) and poultry
    [Show full text]
  • Organic Commodity Chemicals from Biomass
    CHAPTER 13 Organic Commodity Chemicals from Biomass I. INTRODUCTION Biomass is utilized worldwide as a source of many naturally occurring and some synthetic specialty chemicals and cellulosic and starchy polymers. High- value, low-volume products, including many flavorings, drugs, fragrances, dyes, oils, waxes, tannins, resins, gums, rubbers, pesticides, and specialty polymers, are commercially extracted from or produced by conversion of biomass feedstocks. However, biomass conversion to commodity chemicals, which includes the vast majority of commercial organic chemicals, polymers, and plastics, is used to only a limited extent. This was not the case up to the early 1900s. Chars, methanol, acetic acid, acetone, and several pyroligneous chemicals were manufactured by pyrolysis of hardwoods (Chapter 8). The naval stores industry relied upon softwoods as sources of turpentines, terpenes, rosins, pitches, and tars (Chapter 10). The fermentation of sugars and starches supplied large amounts of ethanol, acetone, butanol, and other organic chemi- cals (Chapter 11). Biomass was the primary source of organic chemicals up to the mid- to late 1800s when the fossil fuel era began, and was then gradually displaced by 495 496 Organic Commodity Chemicals from Biomass fossil raw materials as the preferred feedstock for most organic commodities. Aromatic chemicals began to be manufactured in commercial quantities as a by-product of coal coking and pyrolysis processes in the late 1800s. The production of liquid hydrocarbon fuels and organic chemicals by the destruc- tive hydrogenation of coal (Bergius process) began in Germany during World War I. The petrochemical industry started in 1917 when propylene in cracked refinery streams was used to manufacture isopropyl alcohol by direct hydration.
    [Show full text]
  • Bio-Based Chemicals Overview
    Bio-Based Chemicals Overview 2019 PCA International Conference Vancouver, B.C., Canada, 23 - 24 September 2019 Doris de Guzman Senior Consultant – Biomaterials [email protected] OUR CORE STRENGTHS Intermediates, Fibres & Specialty Resins Soda Ash Epichlorohydrin Epoxy Resins Bisphenol A Caustic Soda EDC VCM PVC Acetone Phenol Isocyanates Chlorine Peroxy PO Polyols Polyurethanes Polyester Film Chlorohydrin PO PET Resin Bio-Materials Derivatives EO Derivatives Ethylene Oxide MEG Polyester Fibre Acetic Acid PTA Polyester Polypropylene Fibre Paraxylene Vinyl Acetate Monomer DMT Caprolactam Acrylic Fibre Acrylonitrile Adiponitrile HMDA Polyamide 6 Polyamide Fibre Adipic Acid AH Salt Polyamide 66 Polyamide Resin Polyacetal ABS & SAN PBT Polycarbonate Methanol Isodecanol DIDP Orthoxylene Styrene Methyl Acrylate Isononanol DINP Phthalic Anhydride 1,4-Butanediol Ethyl Acrylate 2-PH DPHP Acrylic Acid Unsaturated Maleic Anhydride Polyester Resin 2-Ethylhexyl Acrylate 2-EH DOP Butyl Acrylate Butanols 2 BIO-MAT E R IAL S & INT E R ME DIAT E S A monthly publication reporting market trends, pricing, and feedstock for Bio-based chemicals and their Petrochemicals counterpart Started in 2007 & Inspired by an unwavering belief that we can and will do better www.greenchemicalsblog.com 3 Value additions of Bio-based Industry to US Economy Forest Products $364bn Bio-based $22bn Chemicals $3.5bn $45bn (NA) $106bn Enzymes Textiles Agriculture $35bn and $1.11bn Forestry Biorefining Bioplastic $506m bottles and packaging Source: USDA, PCA 4 Value additions
    [Show full text]
  • Bio-Based Drop-In, Smart Drop-In and Dedicated Chemicals
    Bio-based drop-in, smart drop-in and dedicated chemicals Authors: Michael Carus, Lara Dammer, Dr. Ángel Puente, Achim Raschka, Dr. Oliver Arendt, nova-Institut GmbH This paper was created in the context of the RoadToBio-project. RoadToBio aims to pave the way for the European chemical industry towards a larger bio-based portfolio and competitive success. The roadmap developed in RoadToBio will specify the benefits for the T O chemical industry along the path from fossil-based industry towards a bioeconomy to meet the societal needs in 2030 (for more information see www.roadtobio.eu) The following briefing text provides definitions and explanations of three different kinds of bio-based chemicals, namely drop-in, smart drop-in and dedicated/novel chemicals, as depicted in Figure 1. The text does not aim to provide finite exact definitions in a strict scientific sense. Rather, it intends to outline a structure in which different kinds Figure 1 gives a first overview of the different pathways from of bio-based chemicals, which require different market strategies, can feedstock to chemicals for fossil-based and different kinds of bio- be classified. As such, the classification will be used as a basis for the based chemicals: Drop-ins, smart drop-ins and dedicated. Drop-ins roadmap work carried out in RoadToBio. The paper is meant as food enter the conventional pathway at an early stage, whereas smart for thought and we would welcome feedback from stakeholders. If drop-ins start with a biomass-related process before they enter the you would like to send us your reaction to this paper, please contact conventional pathway at a late stage.
    [Show full text]
  • New Anellotech Technology Tackles Plastics Pollution by Recycling Plastic Waste Into Chemicals
    New Anellotech technology tackles plastics pollution by recycling plastic waste into chemicals Pearl River, NY, USA, 6 December 2019 – Sustainable technology company Anellotech is significantly expanding its program with Plas-TCatTM, a new process technology aiming to convert a wide range of plastic waste directly into chemicals – which can then be used to make new, virgin plastics. 95% of plastic packaging material is annually lost to the economy after a single use and often ends up in combustors, landfills or polluting the ocean. By leveraging Anellotech’s existing Bio-TCatTM process – which converts biomass into bio-based chemicals and biofuels – Plas-TCat has demonstrated encouraging results in lab studies using pure plastics. Plas-TCat has the potential to offer a new, cost-effective process which will recycle significant quantities of waste plastics directly into commodity chemicals. Once in the recycling system, waste plastics could be converted into commodity chemicals such as olefins, alkanes and aromatic chemicals, which are identical to their petro-based counterparts which are currently used by manufacturers to make virgin plastics. Anellotech wants to develop Plas-TCat so it could convert the majority of plastic materials used today, including composite films. Anellotech aims to use its Bio-TCat lab and TCat-8® pilot systems to feed in plastics waste, eventually developing and designing a commercial plant to efficiently make commodity chemicals at large scale, using the same basic process configuration. Anellotech has expanded its development program, which is expected to last several years. The company has planned studies to ensure that the Plas-TCat process is robust and capable of running long term, on a range of real-world waste plastics feedstocks, with all the impurities that come with them.
    [Show full text]
  • Advancing the Biobased Economy
    Advancing the Biobased Economy: Renewable Chemical Biorefinery Commercialization, Progress, and Market Opportunities, 2016 and Beyond Advancing the Biobased Economy: Renewable Chemical Biorefinery Commercialization, Progress, and Market Opportunities, 2016 and Beyond © 2016 Biotechnology Innovation Organization (BIO) 1201 Maryland Ave. SW Suite 900 Washington, DC 20024 Cover photos: © 2016, Solegear Bioplastic Technologies Inc. and Biobased Technologies® LLC. All rights reserved. INTRODUCTION A review of operating biorefineries Renewable Fuel Standard (RFS), for science, highlighting recent develop- displays a range of technology solutions instance, not only helped stimulate ments in inorganic chemistry. The mag- undergoing commercial development innovation in biofuels, but also opened azine utilized the “materials genome” – beyond just advanced biofuels – to discussions and policy development in as a metaphor for the pace of pre- produce commodity and specialty re- renewable chemicals and biobased commercial innovation in the field. The newable chemicals. Industrial biotech- products. The 2014 Farm Bill (The Agricul- industrial biotechnology sector should nology companies are pursuing renew- ture Act of 2014) extended loan guar- welcome the analogy, especially as its able chemicals and biobased materials antee eligibility to renewable chemicals list of commercial successes grows. The because they can be commercialized and biobased products producers, industrial biotech sector has reached a at smaller scale, as well as promise en- through
    [Show full text]
  • Anellotech's Technology Converts Lay's Potato Chip Bag Into Key
    Anellotech’s Technology Converts Lay’s Potato Chip Bag into Key Chemicals Required for Plastic Bottles Pearl River, NY, USA, 27 February 2020 – Sustainable technology company Anellotech has announced that a laboratory demonstration of its Plas-TCatTM technology – which transforms mixed plastic waste directly into chemicals – successfully converted a Lay’s Barbeque Potato Chip (PepsiCo) bag into para- xylene, the primary chemical used to make virgin PET for beverage bottles. The conversion also had high yields of benzene, toluene and olefins used to make a range of plastics, including polyethylene, polypropylene, nylon, ABS and polycarbonate. Consumer goods brand owners in the beverage, textile, food and cosmetics sectors are setting ambitious 2025-2030 goals to include recycled PET (rPET) content in their products. Used beverage bottles are the main source of rPET – however, not enough beverage bottles are currently produced, collected or recycled to satisfy growing global demand. By successfully converting multilayer food packaging like potato chip bags and other non-PET waste plastics into chemicals including para-xylene, Anellotech can help brand owners meet their recycled PET content targets. Plas-TCatTM has the potential to convert a wide mix of plastics and natural materials – including composite films and multicomponent, single-use packaging like the Lay’s Barbeque Potato Chip bag – directly into commodity chemicals. From the same mixed plastic feedstock, the new process can be adjusted to two different production modes: ‘Hi-Olefins’ which emphasizes the production of olefins such as ethylene and propylene or ‘Hi-BTX’ which will produce mostly aromatics like BTX (benzene, toluene and xylene) and paraxylene – the key component needed for PET.
    [Show full text]